Author: Stephen Huck

By: Jennifer Brazer

Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.

Fact Checked By: Brittany McMillen

The Impact of COVID-19 on Global Food Prices and Trends

COVID-19 global food prices experienced unprecedented volatility as the pandemic disrupted supply chains, shifted consumer behaviors, and triggered policy responses that echoed previous food crises. The pandemic initially caused deflationary pressures in March 2020, followed by sustained inflationary shocks that pushed the FAO Food Price Index up 3.6% year-over-year by December 2020, with some commodities like rice and wheat experiencing 25-35% regional price spikes during peak disruption periods.

As CEO of Complete Controller for over two decades, I’ve witnessed countless economic disruptions, but the pandemic’s impact on food systems revealed vulnerabilities that transcended typical market fluctuations. Working with businesses across the agricultural, retail, and logistics sectors, I observed firsthand how companies that embraced digital transformation and supply chain diversification weathered the storm while others struggled with outdated operational models. This article unpacks the complex interplay of factors that drove food price volatility, examines regional responses, and identifies strategies that built resilience during unprecedented market chaos.

What is COVID-19’s impact on global food prices and markets?

• COVID-19 triggered supply chain shocks spanning production, processing, and logistics—labor shortages in fruit/vegetable sectors reduced harvests by 10-25% while meat processing facilities faced 40% capacity reductions
• Consumer behavior shifted dramatically with U.S. online grocery sales surging 104% during the pandemic while panic buying created artificial shortages
• Regional vulnerabilities emerged as 15 countries imposed export restrictions by April 2020, affecting 5% of globally traded calories
• Long-term inflationary pressures persisted through 2024 as geopolitical conflicts and climate shocks compounded initial pandemic disruptions
• Data-driven monitoring tools like NASA Harvest’s COVID-19 Price Monitor enabled real-time tracking of staple prices across 180+ markets

Shifts in Consumer Behavior and Market Trends

The pandemic fundamentally altered how consumers approached food purchasing, creating ripple effects that reshaped entire supply chains. Nielsen identified six distinct behavioral phases that emerged as the crisis evolved, each presenting unique challenges for food systems already operating at capacity.

Proactive health-motivated purchases dominated early pandemic shopping as consumers sought immune-boosting foods, vitamins, and fresh produce. This initial phase quickly transitioned to panic buying of shelf-stable goods, with pasta, rice, and canned goods disappearing from shelves within days of lockdown announcements. The psychological impact of empty shelves reinforced hoarding behaviors, creating a self-perpetuating cycle that strained retail logistics networks designed for predictable demand patterns.

The rise of food e-commerce under pressure

Digital grocery platforms experienced growth rates that compressed five years of projected expansion into mere months. U.S. online grocery sales increased 104% during the pandemic, forcing retailers to rapidly scale fulfillment infrastructure while managing unprecedented order volumes. China’s JD Daojia platform expanded fresh-food delivery capabilities to serve millions of urban consumers who previously relied on wet markets, demonstrating how crisis accelerated digital adoption across diverse food cultures.

E-commerce success varied dramatically by region and infrastructure maturity. Urban areas with established last-mile delivery networks adapted quickly, while rural regions faced persistent gaps. In Burkina Faso’s Banfora market, maize prices spiked 25% during April 2020 lockdowns as digital infrastructure couldn’t compensate for physical market closures that connected farmers to consumers.

Post-pandemic e-commerce retention rates suggest permanent behavioral shifts, with platforms investing heavily in cold-chain infrastructure and predictive inventory systems. Global online grocery sales reached $725.6 billion by 2025, validating early pandemic investments in digital capabilities while highlighting persistent inequalities in market access.

Supply Chain Disruptions and Price Volatility

Labor emerged as the critical vulnerability across food supply chains, with cascading effects that varied by sector automation levels. Fruit and vegetable production, heavily dependent on seasonal workers, faced harvest delays when border closures prevented normal migration patterns. California strawberry farms reported 30% workforce shortages during peak harvest, forcing difficult decisions between crop losses and unsafe working conditions.

Meat processing facilities became outbreak epicenters, with major plants shuttering operations as infection rates soared. The concentrated nature of meat processing—where four companies control 80% of U.S. beef processing—magnified disruptions when key facilities closed. Processing capacity dropped 40% during peak closures, creating backlogs of market-ready animals while retail shelves emptied.

Transportation and trade restrictions

Maritime logistics faced unprecedented strain as port workers fell ill and quarantine protocols created processing delays. Egypt’s Alexandria port, crucial for wheat imports, stretched beyond capacity as buyers scrambled to secure supplies while accepting additional shipping risks through revised contractual terms. Container shortages and blank sailings disrupted established trade routes, with freight rates increasing 300% on key agricultural corridors.

Export restrictions emerged as countries prioritized domestic food security, echoing policies from the 2007-2008 crisis. Vietnam and Myanmar imposed rice export limits, contributing to 25-30% price spikes in importing nations. While affecting only 5% of globally traded calories compared to 19% in 2007-2008, these restrictions created psychological impacts that amplified market volatility.

Regional case studies: Staple commodities

Wheat markets demonstrated how multiple stressors compound price impacts. Australian drought reduced 2020 production to 15 million tonnes while EU weather disruptions raised production concerns. March 2020 lockdowns triggered panic buying that pushed benchmark prices upward despite record global stocks of 277 million tonnes. Market psychology proved as influential as fundamental supply-demand dynamics.

Rice markets faced unique challenges as political tensions intersected with pandemic disruptions. International rice prices surged 35% in Thailand and 20% in Vietnam during early 2020 as export restrictions revived memories of previous crises. U.S.-China trade tensions added complexity to price signals, with importing nations scrambling to secure alternative suppliers while managing domestic hoarding behaviors.

Burkina Faso’s maize markets illustrated localized vulnerability patterns. Movement restrictions prevented farmers from transporting surplus production to urban markets, creating simultaneous gluts in production areas and shortages in consumption centers. Prices jumped 25% in April 2020 before stabilizing as restrictions eased, though recovery patterns varied significantly between regions based on infrastructure quality and market integration levels.

Inflationary Pressures: Commodity-Specific Trends

Meat prices experienced the sharpest increases among major food categories, driven by processing bottlenecks meeting shifted consumption patterns. Restaurant closures redirected demand to retail channels unprepared for volume increases, while package size preferences changed overnight. Beef prices rose 25% year-over-year by June 2020, with ground beef experiencing even steeper increases as home cooking surged.

Pork markets faced additional pressures from pre-existing African Swine Fever impacts in Asia, creating complex global price dynamics. U.S. pork exports to China increased despite domestic processing challenges, contributing to 12% annual price increases. Poultry markets showed relative resilience with 5-7% increases, benefiting from higher automation levels and shorter production cycles.

Dairy: Resilience through adaptation

Dairy sectors demonstrated remarkable adaptability despite facing similar challenges. While feed costs rose and labor shortages stressed operations, prices remained relatively stable through processing flexibility and market innovation. Direct-to-consumer models emerged as farmers bypassed traditional distribution channels, with farm delivery services increasing 400% in some regions.

Government support programs played crucial roles in maintaining dairy sector stability. Payment programs compensated farmers for dumped milk during early disruptions while processors retooled operations for retail-focused production. The sector’s ability to shift between fluid milk, cheese, and powder production provided flexibility absent in meat processing.

Staples: Volatility linked to trade policies

Cereal markets experienced sustained volatility as trade policies interacted with weather events and logistics challenges. The FAO Cereal Price Index fluctuated based on export restriction announcements rather than fundamental supply changes, highlighting how policy uncertainty amplifies market reactions. Fertilizer cost increases, driven by energy price spikes and supply chain disruptions, created forward-looking concerns about future production capacity.

Regional price disparities widened as transportation costs increased and trade barriers emerged. Landlocked countries faced particular challenges, with import costs rising 40-50% above historical averages. These disparities persisted even as global stocks remained adequate, demonstrating how logistics access became as important as production volumes.

Long-Term Consequences and Policy Responses

The pandemic’s food system impacts extended far beyond initial supply shocks, interacting with subsequent crises to create compound vulnerabilities. Ukraine’s war disrupted Black Sea grain exports just as pandemic recovery gained momentum, while climate extremes stressed production regions already weakened by input shortages. This “perfect storm” pushed global food prices to record highs by 2022.

Fiscal policies designed to support pandemic recovery inadvertently fueled inflationary pressures. Stimulus programs increased food demand while supply chains remained constrained, creating price pressures that disproportionately affected low-income populations. Central banks faced difficult tradeoffs between supporting recovery and controlling inflation, with food prices becoming political flashpoints globally.

International coordination challenges

Initial pandemic responses revealed how quickly international cooperation can deteriorate during crises. By April 2020, 15 countries imposed binding export restrictions, with major rice exporters leading restrictive policies. IFPRI’s COVID-19 Food Trade Policy Tracker documented how these restrictions threatened food security in import-dependent nations, with countries like Kyrgyzstan facing 50% exposure to restricted wheat imports.

International organizations worked to prevent a repeat of 2007-2008’s cascading restrictions, with mixed success. The G20 committed to keeping food supply chains open, though implementation varied. Regional bodies like ASEAN coordinated rice reserve releases, demonstrating how pre-existing cooperation mechanisms provided crisis resilience.

Lessons for Future Resilience

Data-driven monitoring emerged as a critical tool for managing food system volatility. NASA Harvest’s COVID-19 Price Monitor tracked prices across 180+ markets, providing early warning signals for developing crises. Real-time data enabled targeted interventions, from strategic reserve releases to logistics support, demonstrating technology’s role in modern food security.

Business adaptations during the pandemic revealed both vulnerabilities and opportunities. Companies investing in supply chain visibility, inventory flexibility, and digital capabilities outperformed those maintaining traditional models. Predictive analytics moved from competitive advantage to operational necessity as demand patterns shifted unpredictably.

Conclusion

COVID-19’s impact on global food prices exposed systemic vulnerabilities while accelerating transformations already underway. The crisis demonstrated how quickly stable systems can deteriorate when multiple stressors align, but also revealed remarkable adaptability when businesses and policymakers embraced innovation.

At Complete Controller, I’ve guided businesses through this unprecedented period, helping them build financial resilience while adapting operations for post-pandemic realities. The lessons learned—from supply chain diversification to digital transformation—apply beyond food systems to any business navigating modern volatility. For expert guidance on building financial systems that withstand future disruptions, visit our team at Complete Controller.

Frequently Asked Questions About COVID-19 Global Food Prices

How did COVID-19 impact smallholder farmers differently than large operations?

Smallholder farmers faced disproportionate challenges from input shortages and market access restrictions, while some benefited from shortened supply chains and direct-to-consumer sales. Large operations with automation weathered labor shortages better but faced processing bottlenecks.

Why did meat prices increase more dramatically than grain prices during the pandemic?

Meat processing requires specialized facilities and skilled labor, creating bottlenecks when plants closed due to outbreaks. Grain handling uses more automation and storage flexibility, allowing markets to absorb disruptions more effectively despite export restrictions.

Have global food prices returned to pre-pandemic levels?

Most commodity benchmarks stabilized by 2024, though remain elevated due to energy costs, fertilizer prices, and geopolitical tensions. Structural changes in supply chains and consumer behavior create new baseline price levels rather than simple returns to 2019 conditions.

What role did e-commerce play in food security during lockdowns?

E-commerce provided critical food access during movement restrictions, with platforms scaling rapidly to meet demand. However, digital divides meant benefits concentrated in urban areas with existing infrastructure, while rural regions faced persistent access challenges.

How can food businesses prepare for future supply chain disruptions?

Building resilience requires diversifying suppliers, investing in real-time inventory tracking, developing flexible production capabilities, and maintaining financial reserves. Digital transformation enables rapid pivots while strong supplier relationships provide crisis adaptability.

Sources 

• Akademiya2063. (2020). “COVID-19 Brief: Impacts of the Pandemic on Maize Prices in Burkina Faso.” https://akademiya2063.org/uploads/COVID-BRIEF-AKA2063-013.pdf
• Arkansas ScholarWorks. (2021). “Impact of COVID-19 on Rice Markets.” https://scholarworks.uark.edu/etd/4207/
• BBC News. (2020). “Coronavirus: Why have there been global food supply problems?” https://www.bbc.com/news/business-52116195
• Capital One Shopping. (2025). “Online Grocery Shopping Statistics.” https://capitaloneshopping.com/research/online-grocery-shopping-statistics
• CZ App. (2024). “Lessons from the 2020 Wheat Market.” https://www.czapp.com/research/2020-wheat-market
• EuroMeatNews. (2022). “US Meat prices surge during pandemic.” https://www.euromeatnews.com/Article-US-Meat-prices-surge-during-pandemic/
• FAO. (2020). “COVID-19 pandemic – impact on food and agriculture.” https://www.fao.org/covid-19-food-systems-response/en/
• FAO. (2020). “Evolution of e-commerce during the pandemic.” https://www.fao.org/documents/card/en/c/cb1254en/
• IFPRI. (2025). “COVID-19 Food Trade Policy Tracker.” https://www.ifpri.org/project/covid-19-food-trade-policy-tracker
• IFPRI. (2025). “How Countries Coped with Agricultural Trade Disruptions.” https://www.ifpri.org/blog/how-countries-have-coped-with-recent-agricultural-trade-disruptions/
• IFPRI. (2020). “COVID-19 and Global Food Security.” https://www.ifpri.org/publication/impact-covid-19-global-food-systems
• McKeany-Flavell. (2021). “FAO food price index up 3.6% in 2020.” https://www.mckeany-flavell.com/fao-food-price-index-up-3-point-6-percent-in-2020-01-07-21/
• NASA Harvest. (2023). “COVID-19 Price Monitor.” https://nasaharvest.org/
• PMC. (2024). “Impact of COVID-19 on Global Food Supply Chains.” https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7366977/
• Sensient Food Colors. (2020). “COVID-19 is changing the food industry.” https://sensientfoodcolors.com/en-us/industry-trends/covid-19-changing-food-industry/
• TheBullVine. (2024). “Dairy Market Resilience During COVID-19.” https://www.thebullvine.com/news/dairy-market-resilience-covid-19/
• UN News. (2025). “SOFI Report: Food Security Challenges Post-COVID.” https://news.un.org/en/story/2025/07/1132012

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Young entrepreneurs experience many high points and low points. It has its hazards and favorable circumstances. As young entrepreneurs ourselves, we accept that our preferences outperform our weaknesses. We have made numerous dangerous choices like true entrepreneurs people need. We left an organization wherein we got a heavy monthly check to begin an existence of no soundness and assurance. However, it was that adrenaline surge of a businessperson to make something new that we desired, not sureness. We love the place that is known for the obscure and of recent disclosures. Facing challenges, committing errors, and taking care of business shape our lives.

Initiating a new business from the start is a challenging feat. Only ask any of the many wannabe business owners who plunge into the inexact world of entrepreneurship yearly. In a couple of years, more than the business leaders fold a covenant to how hard it is to initiate and maintain a profitable business.

For those industries that do make it, fewer elements stand out as factors for success. One significant one is choosing the correct market or niche industry to start the business, which can be done after entirely understanding that market.

Obtaining insight into your target market early on gives your startup business many critical strategic benefits. It lets you map out a market growth rate, barriers to entry, taxation and regimes, fragmentation profile, and, probably more significantly, capital accessibility from enthusiastic investors. After all, not all investors will be prepared to pump capital into a business whose market has no growth potential.

So, when entrepreneurs start to understand their dreams of keeping a business, here are some of the most profitable, investor-friendly markets that statistically show the highest opportunity for success.

E-commerce

Comer is an extra technology that leads in the market but still has growth power. Suppose you have a different and unique idea for an e-commerce store. In that case, you can start your business from a comfortable home or remote environment.

 If you want to take a more significant share of the industry, you already do that if you have an e-commerce store. Keep in mind that the e-commerce store and e-commerce platform space have already been conquered by giants such as Amazon and Shopify. So, if you want to initiate your own e-commerce business, you must research the market’s niche and be focused.

Digital Marketing

 On the globe, where an average 4,500 USD video ad can turn an everyday startup into a billion-dollar organization, DM remains a capable platform for startup leaders who need to make money by letting other businesses advertise their brands.

Indeed, the DM space is ample, with a staggering 283 billion USD spent on digital ads the previous year. It is projected that internal marketing and marketing activities departments worldwide will spend over 333 billion USD on digital ads in the current year. With a 50% chunk of the worldwide ad industry, this will mark the first time digital ads become one of the most popular marketing platforms worldwide.

There are many chances to maintain a brand within this market for startup business leaders or entrepreneurs interested in this zone. Even though marketing agencies’ usual manner often includes an all-inclusive marketing offering, it recompenses to specify in a few zones within the market—pay-per-click (PPC) and Search engine optimization (SEO). Ads are two lucrative digital marketing zones, thanks to the half percent in the lead generation that originates from pay-per-click strategies that mostly see businesses paying top dollar for these services.

There are various chances in influencer marketing, social media management, digital ad placement, and other upcoming digital marketing roles that can be good for entrepreneurs.

Artificial Intelligence

Artificial intelligence (AI) defines technologies relating to machine learning, natural language processing (NLP), computer vision, and many more. However, artificial intelligence (AI) is a technology that has been used for some time. As it becomes more sophisticated, its industrial potential is growing as well.

Bottom Line

You are being a successful entrepreneur who needs, among other things, deep information about your target market. And because a positive, growth-oriented market will be the most attractive to investors, it is always wise to recognize investment trends within your target market. It will assist you in matching your business with potential investors when you have set up shop.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

With the advent of the digital age, where every kind of information is being disseminated, it is challenging for people to filter out relevant content they are interested in. If you switch on the TV, you will witness debates between anchors and political candidates, reality TV shows, and 24-hour news cycles.

Aside from that, you have many TV series and movies at your disposal, thanks to Netflix, Amazon Prime, and more such subscription-based streaming platforms. These various forms of media have infiltrated our everyday lives to a point where our thoughts get muddled. We need to make an active effort to form creative and original thoughts.

The average rate of an individual checking their phone is approximately 46 times a day (increased from 33 looks every day in the year 2014), as Time.Com has reported. The evolved, modern-day culture has turned people into social animals where it is necessary to respond to text messages and group chats instantly.

We are so invested in keeping up with the online communication culture that even if it disrupts our sleep cycle or damages organic relationships, we cannot do anything about it. So, to keep up with this new dynamic in virtual interaction, brands must also change their ways and communicate their story in a modified fashion. If they want to surpass all the noise and have their message heard, the following presents some great tips that can help them.

Drive Straight into it and Get Your Point Across

An average American comes across around 4,000 – 10,000 messages daily, but their memory can retain only 100 out of them all. It is crucial that amidst all the clutter, your message is conveyed correctly and heard. It makes sense that it is hard for humans not to get distracted in this fast-paced world. Our attention spans are consistently low, dropping from 12 to 8 seconds.

Neither do brands have all the time in the world to tell their story and discuss their message, products, or services at length, nor do consumers have the time to go through it all. So, companies should use innovative, attention-grabbing ideas and compact messages with great visuals to stand out.

Visual Content Wins

It is crucial to put across your message; however, make sure that it is visually impressive content bound to turn heads. The impact compact messages accompanied by short bursts of information have is massive. Consumers find it much more convenient to consume visual content than text-around 60,000 times. More than 65% of individuals are visual marketers and learners who utilize videos to generate revenue 49% faster than those who do not use videos.
Businesses rely entirely on words to make an impactful message that is heard. Prospective customers want to be able to envision your product or service in their lives before they make a purchase. It has been reported that buyers are 88% more interested in availing a service or buying a product after seeing a video.

Have a Social Media Presence Because That is Where Your Audience is

People from all generations, age brackets, and backgrounds are utilizing social media platforms. Thus, brands must take advantage of these platforms by marketing themselves through them and potentially grabbing the attention of their target audience.

Facebook users by Age

• 82% of adults ages 18 -29
• 79% of adults ages 30 -49
• 64% of adults ages 50 – 64
• 48% of adults ages 65+

Instagram users by Age

• 23% of adults ages 18-24
• 26% of adults ages 25-34
• 19% of adults ages 35-44

Twitter users by Age

• 18% of adults ages 18-24
• 22% of adults ages 25-34
• 20% of adults ages 35-44

Understand Various Factors like the Social and Cultural Values of Your Consumers and Generate Relevant Content

Let us take the example of New Heartland to explain this point. If you were advertising your product or services in New Heartland, you would know that 60% of the consumers reside there. Some critical cultural touchpoints are a part of their tradition and should not be overlooked.

These include sports, music, tech, food, and fashion dominantly. An important aspect is that core values, which entail religion, family, and community, all influence the brands they endorse.

41% of New Heartland consumers claimed they are more drawn to products and services aligning with their core beliefs. It seems that marketers are not yet hitting the mark here as in the same group of responders, only 4% said advertisements “often” are in sync with their core values, while 42% reported that they are “rarely” in line with their core values.

This kind of information paves the way for businesses to understand better what their consumers demand. You can see what resonates and connects with them and accordingly come up with unique messages that speak directly to their culture.

Conclusion

For brands that can get into the flow of this communication tsunami with valuable and consumable messaging, success will be measurable and sustainable.

Businesses must understand the demands and expectations consumers have from them to get past the barrier of digital noise. Only if your brand employs communication mediums to convey messages effectively will you be able to take it to the next level.

So, remember these guidelines and drive your brand to ultimate success!

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The excellence of leadership impacts each level of any company. Whether you are running a business or any freelance business does not matter. At one or another time, everyone has felt the effect of lousy team leadership, demotivated workers, confusion regarding responsibilities and roles, and plummeting sales. A good leader could affect quite the opposite, but what makes a good leader?

The responsibilities and duties of a leader contain two primary categories: management and leadership. Managerial and administrative skills may irritate everyone else, but keep things in solid order, like following organization procedures, reporting meetings, and ensuring everyone knows the KPIs. But make no error; while management leadership skills are essential and essential, managerial skills are just as significant. Recognizing your duties or responsibilities as a manager and leader is critical. 

Give a Strong Vision

Visionary leaders get a clear view of their market and the product. They could see out of today’s challenges and ambiguity to enhance the picture of tomorrow. Powered by inspiration, they built a sense of expectations for the future. They sense the urge to prosper in their bones and want the workers to share that feeling. This feeling cannot be mandatory nor forced; it is increased by influence.

One of the leadership duties and responsibilities is to grasp the end picture as a discipline, but it must be pledged daily. Here are some activities you could regularly perform to give an unclouded vision for your workers.

Communicate the Result in an Understandable Way

You may see it, but your workers want comfort that it truly is the destination you all are successfully going to. Ensure you have a clear picture of the result day and say it aloud sometimes every quarter.

Persistence

Nothing is worse than a leader that drives where the wind takes them. Ensure you have a stringent, strict process in place. Use objectives and key results (OKR) to implement techniques into the daily routine.

Be Bold

Measured the number of risks. Innovation cannot take place without taking hazards. If you are willing to go the additional mile, it refers to everyone’s clear message.

Encourage Creativity and Consistent Improvement

Creativity is not only something with which we are born. It consumes effort and time to master, and it is significant to be practicing it. Comfort areas are huge red zone areas for business. It is the leadership’s duty or responsibility to push workers to come out of their comfort zones if it occurs. When your workers feel comfortable and safe, you must work double as hard to progress. Each leader knows how significant teamwork is in the office, but creativity is only as substantial.

Inspire by Setting an Example

Perform the work! But remember that leaders do not have to know about every specialty they have recruited. Instead, they must be from one of those who give guidance. The delicate and actual line between too small contact and micromanaging – everything in between is the sweet spot.

Follow the Company Process by the Book

One of the most significant business decisions each leader must face in the digital world is what business procedures the organization will use. We all want to measure what matters. And the calmest approach to doing that is to utilize the objective and critical results technique. It is the leadership duty or responsibility that your company’s level is associated with the long-term strategy.

Supervise Team Reporting & KPIs

On average, you see around five thousand advertisements per day. According to the statistics from 2007, what has occurred to the internet since then is well known. So, with each step you pick and each move you make, an ad will always follow us.

Bottom Line

A team leader’s responsibilities and duties might vary occasionally, but the primary area duties remain the same. The term visionary is thrown around the block too quickly. One thing is knowing what business you are in and steering your organization to the correct place with good managerial skills.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Why do so many projects aimed at digital transformation fail before they have a chance to succeed? With its promise of a whole new operational paradigm, the idea of digital transformation is sweeping the corporate world like a tidal wave. However, the shocking failure rates reveal the harsh reality and compel us to ask, “Why do so many fail, and how can organizations successfully navigate this complex journey?”

There are many pitfalls of digital transformation, but they may be avoided. The key is realizing how carefully technology, culture, and strategy interact. Mistakes in these areas can jeopardize even the best-intentioned efforts, turning potential successes into stories of lessons learned.

Join us as we uncover the strategies that set apart success from failure in the digital revolution.

Common Misunderstandings About Digital Transformation

To penetrate the essence of digital transformation, it’s essential to navigate around several typical blunders that can morph an enterprising initiative into a cautionary tale, thereby reducing the digital transformation failure rate.

1. Leadership and vision: At the forefront is a need for more leadership commitment. Inadequate leadership can undermine the most well-intentioned digital transformation process. Leaders must do more than endorse; they must actively champion digital initiatives, ensuring that the entire organization is unified and advancing in concert.
2. Cultural shift and employee buy-in: Digital transformation is as much about people as it is about technology. Ignoring company culture. Moreover, there needs to be more attention to internal engagement within the digital business, and failing to involve employees can breed resistance, decelerating or even stalling progress. It’s about integrating digital into the organization’s core, making it an intrinsic part of daily operations.
3. Strategic alignment: Without a clear transformation management strategy that aligns digital transformation with long-term business objectives, organizations risk pursuing technology for its own sake without a real purpose. It’s not just about deploying new technology; it’s about transforming processes, culture, and customer experiences to propel the business units forward. This strategic alignment ensures that digital transformation initiatives become integral parts of the organization’s journey toward innovation and growth.

By avoiding digital transformation pitfalls, businesses can more effectively navigate the complexities of digital transformation, transforming potential obstacles into stepping stones toward success. This proactive approach minimizes the chances of transformation failure, setting the stage for a smoother journey.

The Importance of Leadership and Vision

In the quest to sidestep digital transformation failure, the role of leadership, particularly that of transformation leaders, cannot be overstated. Here’s how leaders can steer the ship toward success:

• Clarify Vision and Align Goals: Leaders must chart the course by developing a crystal-clear digital strategy. Digital transformation goals harmonizing with the company’s overarching objectives are crucial. This clarity helps align digital initiatives with business goals and is a beacon guiding the organization’s transformation journey.
• Cultivate a Digital-First CulturePlanting a garden of innovation requires leaders to foster a digital-first mindset across the organization, leveraging digital technologies to enhance user experiences. This involves encouraging innovation, collaboration, and continuous learning, transforming the organization into a vibrant ecosystem where ideas flourish and everyone is geared towards unlocking the workforce’s full potential.
• Embrace and Lead ChangeNavigating the digital landscape with an Agile approach, senior executives must be adaptable, anticipate roadblocks, and lead by example. They must visualize how technology, beyond legacy systems, can revolutionize internal processes and customer experiences. This vision extends beyond introducing mobile apps—it’s about reimagining customer journeys and core business processes for a digital age. Leaders should embody the spirit of continuous learning, stepping outside their comfort zones, and championing a culture that celebrates innovation.

By weaving together a robust transformation strategy with leadership support, leaders can lay a strong foundation for a successful digital transformation, turning potential pitfalls into stepping stones toward innovation and growth.

Cultural Resistance and Change Management

It is overcoming the hurdle of cultural resistance and managing change. Implementing an effective change management strategy is akin to navigating a ship through stormy seas. Leadership is critical in keeping your vessel steady and on course.

• Enable & engage

1. Begin with comprehensive IT training programs, ensuring employees have the necessary digital skills. This proactive approach boosts confidence and mitigates the fear of the unknown.
2. Maintain wide-open channels of communication. Employees can voice concerns and feel heard by offering ongoing support channels bolsters internal engagement and fosters a strong sense of ownership.

• Empower & elevate

1. Make the digital transformation process inclusive by integrating employee feedback into decision-making. When employees have a say, they’re more invested and likely to recognize the value of change.
2. Highlight the value for customers. Clearly articulate the benefits of digital transformation, from streamlining operations to enhancing customer experiences, making the change less daunting and more appealing.

• Navigate & celebrate

1. Recognize that fear of job loss or changes in job roles can cause resistance. Tackle these concerns head-on by involving employees in transition plans and emphasizing skill development as part of your change management strategy.
2. Don’t forget to celebrate digital transformation successes and milestones. This boosts morale and fosters an innovation culture, encouraging continuous improvement and adaptation.

By integrating digital transformation process strategies with a dash of empathy and a sprinkle of encouragement, organizations can overcome resistance, clearing the path for a successful digital transformation journey.

Strategic Alignment and Business Objectives

Understanding and committing to digital transformation goals is the cornerstone of avoiding failure in this arena, acting as the bridge between ambitious digital objectives and measurable business outcomes. Here’s a comprehensive guide on fortifying that crucial connection:

• Set clear objectives

• Define SMART (Specific, Measurable, Achievable, Relevant, Time-bound) objectives that mirror your business goals. 
• Create KPIs that track progress and impact, aligning them meticulously with your objectives. 

• Embrace a holistic approach

• Recognize that a digital transformation project is not merely an IT endeavor but a comprehensive business strategy that necessitates aligning technology with your business model, refining processes, and achieving strategic goals.
• Consider the projected growth, diversification plans, and organizational changes to tailor your digital strategy effectively. This approach ensures your growth strategy is in harmony with evolving business models.

• Foster cross-functional collaboration

• Foster cross-departmental collaboration and promote teamwork across all levels. This means understanding each department’s KPIs, facilitating knowledge sharing, and setting unified goals to drive collective success.
• Engage all stakeholders, from the C-suite to frontline employees, to ensure comprehensive understanding and support for how digital initiatives are a crucial complement to the broader business strategy.

This strategic alignment guarantees that digital transformation projects are not perceived as mere tech upgrades but are fundamental components of your organization’s innovation journey and growth.

Navigating Through the Hype of New Technologies

Embarking on the digital transformation journey with the allure of new technologies like Generative AI and cloud computing. 

To ensure a clear path, adopt a strategic approach and consider the following strategies:

• Invest wisely & focus on the end user

• Allocate resources to essential technologies that enhance customer experiences. 
• Remember, integrating sustainability and ESG into your business is not a sprint to adopt the latest gadgets but a marathon toward long-term improvement and resilience.

• The roadmap to digital mastery with generative AI

• Initial Steps: Assess your current tech landscape and define clear objectives
• Engagement & Planning: Involve stakeholders and apply design thinking for seamless technology integration
• Execution & Evolution: When implementing new technologies, keep an eye on robust data management, stringent security, and uncompromising privacy while fostering a culture of continuous learning and innovation.

Case Studies of Successful Digital Transformations

Embarking on a digital transformation journey can be daunting, as it involves significant changes to how an organization operates and utilizes technology—navigating through uncharted waters. Yet, we can learn from the trailblazers who have charted courses worth following by examining digital transformation case studies. Here’s a glimpse into their journeys:

• Netflix flipped the script by transitioning from DVD rentals to dominating the streaming world within the entertainment industry, offering a buffet of movies, TV shows, and documentaries. This bold move not only redefined entertainment but also showcased the potential of e-commerce in transforming traditional business models.
• Amazon took retail into the stratosphere with a concoction of data and automation, serving up personalized shopping experiences and AI-driven recommendations, all while keeping the supply chain tighter than a drum.
• Starbucks ‘Digital Flywheel’ concept has been brewed up, enhancing rewards, personalization, and ordering through its app, all spiced up with AI for that perfect blend of technology and taste. This innovative approach incorporates the digital Flywheel and leverages AI to tailor experiences with a high degree of personalization.

These vignettes are not just digital transformation success stories; they showcase the power of innovation coupled with the strategic foresight to pivot and embrace technology. They prove that with the right approach, digital transformation can propel businesses into new realms of success.

Conclusion

Deciding to undergo digital transformation is like setting sail in uncharted waters; it’s fraught with hurdles, but success lies in meticulous planning, aligning with business objectives, and maneuvering through challenges. As we’ve dissected throughout, the crux of dodging failure hinges on a combination of strategic foresight, robust leadership, embracing cultural shifts, and aligning with overarching business objectives. When woven together, these elements not only steer organizations away from pitfalls but also gear them toward a trajectory of innovation and growth. This synthesis of insights urges companies to harness the collective wisdom and lessons shared, casting light on the routes that have led others to flourish in the digital landscape.

Moreover, the anecdotes of Netflix, Amazon, and Starbucks underline a common thread – the audacity to pivot, the zeal to innovate, and the vision to weave digital into their operational ethos. These stories are not just tales of triumph but beacons for businesses aspiring to transcend the traditional and forage into the digital dominion with conviction. As we wrap up, let this exploration serve as both a lighthouse and a compass, guiding toward thoughtful digital adoption enriched by a keen understanding of the underlying dynamics and a digital ethos that resonates with the very core of these successful entities.  

 

FAQ

 

What are the common challenges faced during digital transformation?

One of the primary challenges in digital transformation is the resistance to change. This resistance often stems from a mindset that if something isn’t broken, there’s no need to fix or change it, as noted by expert Sarkar. Such an attitude can obstruct progress and stifle innovation, potentially posing a threat to the organization’s survival.

Why is the failure rate so high for digital transformation initiatives?

Approximately 70% of digital transformation efforts fail due to the absence of a comprehensive change management strategy. Change management is a systematic approach that supports individuals in adapting to organizational changes. Statistics show that organizations with a solid change management strategy are six times more likely to achieve their digital transformation objectives, highlighting the critical nature of embracing change to avoid the high digital transformation failure rate.

Can you identify common pitfalls in organizational transformation and suggest how to avoid them?

Several common pitfalls can derail transformation efforts, including:

• Insufficient clear communication.
• Neglecting the importance of stakeholder engagement.
• Having an aversion to failure and avoiding taking risks.
• Overlooking the well-being of employees.
• Concentrating exclusively on technological aspects.
• Trying to accelerate the transformation process too quickly.
• A misalignment between the transformation efforts and overall business strategy.
• Disregarding the importance of data and metrics in guiding decisions.

What are the potential obstacles to successful digital transformation and strategies for overcoming them?

The most frequent obstacles encountered during digital transformation include:

• Resistance to change.
• Communication and collaboration barriers within the organization.
• Concerns about security.
• Challenges in adopting new tools and processes.
• Making the right technology choices.
• Keeping pace with evolving customer needs.
• Resource limitations.
• Lack of a clear vision and strategic direction.

To overcome these barriers, organizations must develop strategies that address each of these issues, such as fostering a culture of change, improving internal communication, ensuring robust security measures, carefully selecting and implementing new technologies, understanding and responding to customer demands, allocating sufficient resources, and crafting a clear and coherent digital strategy. By overcoming digital transformation barriers and instituting security measures, companies can navigate the complexities of change more effectively.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The market for virtual assistants is booming. Due to the exponential growth in artificial intelligence technologies, devices capable of mimicking human interaction to execute tasks are becoming increasingly popular. Amazon’s Alexa and Echo, Apple’s Siri, Microsoft’s Cortana, and Google Assistant are popular virtual assistants. The development of this technology holds incredible potential for industries such as self-driving cars, home care, healthcare, and education.

This article will introduce what AI virtual assistants are, the reasons for their rise in usage, and what the future holds.

What is an AI Virtual Assistant?

An AI Virtual Assistant is a system capable of emulating human interaction to execute various tasks, from playing your favorite music to interacting with customers and solving their problems. Some technologies that have made this possible are machine learning, deep neural networks, and natural language understanding (NLU). As a result, the virtual assistant is capable of knowledge, reasoning, and understanding.

On top of that, there has been a rapid increase in the concept of augmented reality. Augmented reality is another technology that holds the same promise. Both technologies have the potential to revamp the retail world, with more and more customers demanding that there should be more significant investment in these.

Augmented reality juxtaposes digitally created elements with fundamental world elements in real-time. Using Augmented Reality technology, you can alter your perception of the natural world with the digital creations of the AR-enabled device.

According to figures by Statista, there is a steady growth in the market for Augmented Reality applications. It projects that by 2023, the total market will be worth over $18 billion. Moreover, it projects that worldwide spending on mobile applications with augmented reality will reach a value of $15.5 million in 2022.

The Rise in AI Virtual Assistants

Large companies across various industries are investing heavily in AI virtual assistant development. This technology isn’t just an add-on anymore. It’s a product. It also means that customers frequently use the technology. It is no longer a novelty feature.

As a result of this investment, the technology behind AI virtual assistants has been vastly improving, which has led to their success. Improvements in AI have led to the development of many kinds of virtual assistants, such as virtual employee assistants (VEAs), virtual customer assistants (VCAs), and virtual personal assistants (VPAs).

According to a report by Gartner, 25% of people working will be using virtual employee assistants by 2021. This percentage was below 2% in 2019.

The usage of virtual assistants spans many industries. For example, VPAs can help their consumers complete various personal tasks, like Apple’s Siri. Or they can provide an easily accessible interface for cars or homes connected to it. Another use of Virtual assistants that is gaining popularity is as sales or customer service agents. One of the primary reasons for this is virtual assistants’ sheer scalability and efficiency.

Future Possibilities for AI Virtual Assistants

As the report by Gartner shows, the rise in the usage of virtual assistants has been recent but is proliferating. Given the speed at which the technology for AI Virtual Assistants develops, we can expect the following:

Greater Levels of Customization

You can customize the interactions between VAs and users to improve the experience. The customizations can include adapting the language and voice chosen for the assistants.  

Context Sensitivity

Technologies such as Natural Language Processing (NLP) and Natural Language Understanding (NLU) can make it possible for these virtual assistants to understand the deeper meaning behind a user’s words and establish relevant context. You can complete accomplishing tasks for people much more effortlessly.

Humanized Conversation

AI virtual assistants can have more humanized and meaningful conversations with their users.

Conclusion

Undoubtedly, AI virtual assistants are the wave of the future. As the technology behind VAs improves, they are bound to become an integral part of our lives. If you want to know more, visit our website! With the way companies invest in this, it’s only a matter of time before this becomes a reality.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

When creating your website, choosing the right domain extension is essential as it significantly impacts SEO performance. Many studies suggest that extension names have a light impact on ranking, but they still have an effect. Features such as domain-level keywords and new extensions affect SEO in some way. 

Effects of New Extensions on SEO

Whether new or old, all new domain names start at the same point when ranking on Google commences. SEO is a multi-level and complex procedure, but it has two areas where new extensions affect the rankings. 

• Technical SEO

Technical SEO is a network of methods and processes that influence site optimization. It includes design, backlinks, scripts, loading time, content, etc. One of the most impactful parts of SEO is having a backlink from a reputed website. However, not all backlinks are equal. The text that a website uses to link to your pages is called anchor text, and it helps to determine the strength of a relative link in search engine algorithms. You have more impactful results in SEO when the URL and the keyword you try to match the anchor text. 

Domains with a keyword-rich extension can become more descriptive than .com or .net extensions. You get the optimal value for the link if the domain name matches the anchor text. It increases the chance of securing high-quality and on-topic backlinks to improve rankings. 

• Process fluency

As marketers, we need to ensure that we control everything. That is why we use predictable and logical reactions from customers. However, a large portion is irrational and relies on cognitive emotions and behaviors; fluency is also among those factors. The business, due to fluency, influences the way in which the audience reacts to a business. It plays out in several ways regarding the domain name and new extensions. If your brand is easily pronounced with a short extension, it becomes credible and more trustworthy. The best way to increase extension fluency is to avoid using numbers, hyphens, and other special symbols. 

New domain names, such as Store, Online, etc., become instantly recognized by a customer, and without looking twice, they know the nature of the business. The extension name also becomes a part of your overall brand image and easily resonates with a visitor’s mind. 

In addition, an extension’s pronunciation and simplicity help generate more clicks and increase the analytics results. 

How Do You Target the Correct Extension?

Selecting an extension that quickly establishes trust is one of the most challenging activities. For this purpose, we have some easy tips for you to consider. 

• Target your Keyword

While placing a target keyword does not impact the SEO rankings, it still establishes relevancy for a visitor. If you look closely, Google always bolds the keywords that appear in extensions to make them more prominent.

• Use your brand name

There are certain places where the target keyword is not the brand name. Only some lucky people have a brand name that is their keyword. The truth is Google’s algorithms value brands more than keywords. Brands are the solution to sort out and connect with the relevant audience.

• Increase relevancy

It is essential to increase the relevancy of an extension to communicate appropriately. The audience has a better chance of understanding and making sense of a business relevant to the industry or sector.

• Always keep it short

The best way to make relevancy and reliability of an extension is to keep it short. Long extensions may seem valuable, but they quickly lose their charm and authority as people refrain from typing those long names. One or two words are enough to keep an extension short. 

• Keep it industry-specific.

With so many extension options available, keeping it industry-related makes it instantly recognizable to the audience. If your brand is related to tech, then taking. As an extension, tech gives your audience an understanding of the business. It is always best to keep it industry-related for better recognition and relevancy.

Final Word

Using the right domain name has a minor impact on SEO performance but creates a significant chain reaction to influence other factors. Taking care of each extension according to relevancy, brand name, keywords, and other considerations ensures your business generates better visibility and engagement. 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Cash flow is the backbone of your business, and it refers to the movement of funds internally and externally in your company. Cash is the ultimate priority when it comes to the financial management of a striving company. The delay between the times you’ve to pay your vendors and employees and the account payables you’ve to collect from the clients is the issue, and the solution is cash flow management. In other words, managing cash flow means lagging the outlays of cash to the maximum while motivating anyone who owes you money to repay it as soon as possible. 

They were comprehending that cash flow strategies are not glimpses into the future. They are the intelligent guesses that balance numerous factors, including your client’s payment history, your thoroughness in recognizing upcoming expenses, and your supplier’s patience. Watch out for concluding without justifying that you will receive account receivables at the same rate they have presently, and you can extend payables accordingly. 

You were skillfully managing cash flow to figure out when you’d have cash in your hands, how you could get more rapidly, and how to limit your business expenses to avoid cash flow problems. 

To avoid cash flow problems, you can implement the following pointers.  

Figuring Out the Disturbing Point 

Every business owner can identify the profitability of their business. It won’t necessarily affect the cash flow, but it will provide an initial goal to strive for a target required for proceeding with future cash flow. Negative cash flow and constant losses lead to depression, so understanding the breakeven point is essential. Focus on managing the cash flow and successfully reaching your profitability goals. 

Modernized Accounts System

You must have an updated accounting system installed for sound cash flow management. The data is processed frequently to anticipate account receivables, accounts payable aging, liabilities, and cash in hand. Reviewing the balances helps you quickly determine your business cash flow, opportunities, and trends. 

Set Your Fees and Prices Appropriately 

Essentially, be mindful of your set price or fees. If you offer an exceptional service that your competitors don’t, you must never hesitate to set your price at a premium. Secondly, utilize online invoicing with digital credit card payment to ensure instant payment. The slight waste to credit card fees is more than neutralized by quicker collection. Lastly, get a commercial line of credit from your potential bank to save the money required during the slower selling times.

Trust a Financial Expert 

Trusting a financial expert to manage the internal and external cash flow is essential. Typically, an accountant has nothing to do but analyze the business through spreadsheets. However, their duty is far from this. Assigning cash flow management to a financial expert is necessary for business owners. Not only is this decision transferring wise, but an accountant can also introduce new perspectives that you wouldn’t have otherwise as a business owner. Treat yourself by hiring a professional accountant to do most of the monetary tasks. 

Tracking and Analyzing Operations 

The best way of managing the cash flow is to analyze it thoroughly and track it constantly. Sometimes, you’ll identify that you might not need a specific tool or subscription. Automation is still a better choice than hiring a professional accountant.

Consider Annual Services

Evaluate any premium services you bought annually and even pay for the services you no longer need. Reconsider the services according to your requirements and make sure if you need any other tool or software. 

Often, entrepreneur experiences tremendous uncertainties in their expected cash projections with the cash flows. Many of them find it daunting to budget their finances when it happens because they have failed to comprehend the scenario. 

Intelligent business owners determine the cash flow drops early. One of the easiest ways to tackle cash flow drops is to invest in cash flow management software. Cash flow management makes tracking all the incoming and outgoing cash flow effortless. 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The manufacturing sector is a significant part of the global economy and accounts for nearly 16% of the worldwide GDP. As a result, governments across countries focus primarily on encouraging the manufacturing sector. Specific initiatives in emerging economies promote the manufacturing industry, including Made in China and Made in India, but the effects of the manufacturing industry on the economy and the environment. Let us discuss the two aspects individually to understand the impact of the manufacturing sector.

Environmental Effects of Manufacturing

The question should be how factories affect the environment, but there is no question that factories significantly damage the environment. It has been claimed that factories are responsible for 2/3rd of the pollution in the background.

As a result, dangerous materials and toxic waste deteriorate the environment, threatening the ecosystem and people’s health. Countries that make consumer goods or produce raw materials will be affected environmentally by old-fashioned behaviors—making garments and getting rid of waste into the rivers that kill the fish, rivers getting green algae, and impacting the lives of people living around the rivers.

Industrial factories play a big part in the air pollution that we, as global citizens, must endure. The toxic gases released into the air, combined with those released through automobiles or roads, mean an increased risk of developing chronic respiratory, heart disease, lung cancer, and many other illnesses. Air pollution also affects wildlife, which could make many species extinct.

Factories also cause water pollution, which deteriorates life underwater. Illegal dumping of contaminated gases, heavy metals, waste, radioactive material, and chemicals into rivers and seas causes damage to marine life and deteriorates the environment. Not all factories are responsible for water pollution, but those in less regulated parts of the world tend to dump their toxic waste into rivers as it is cheaper.

Finally, soil pollution pollutes the earth’s soil as industrial waste is thrown into landfills. These toxic materials and chemicals destroy the soil’s fertility, decrease crop productivity, and contaminate food consumed by millions of people worldwide.

Economic Effects of Manufacturing

Manufacturing has many important links with other sectors throughout the economy. Therefore, its impact stimulates economic activity more than other sectors. Studies suggest that manufacturing industries have a multiplier effect: positive developments have exponential returns, and harmful activities have an overall deterioration.

The manufacturing industry also employs 10% of the global workforce, providing jobs to people at all professional levels. 21st-century productivity and automation gains prevent manufacturing employment as a percentage of total work from approaching the halcyon days of the 50s.

According to the sectoral multiplier effect, companies and industries are known for giving the economy the biggest bang for the buck. Every dollar output by this sector generates a particular economic activity across society. Purchasing and sales transactions lead to the direct and indirect need for resources and employment, which benefit other facets of society.

Because manufacturing has many important links, as mentioned earlier. That is one of the significant reasons manufacturers play a critical role in a country’s economic growth. As the factory outputs increase, it requires more inputs from utilities, mining, and suppliers, creating jobs and other opportunities in other sectors that use its products. The manufacturing industry has strong connections with retail, construction, and transportation. It also spurs growth in services such as transportation and finance.

Based on an earlier projection in 2021 by the Bureau of Economic Analysis (BEA), the annual input-output tables have estimated that a dollar worth of final demand for manufacturers generates $1.48 in other services and products. It is higher than any other sector in the business industry. The wholesale and retail sectors have lower multipliers, generating 54 and 58 cents, respectively, in other additional inputs for every dollar of economic activity they generate.

All in All

The manufacturing sector has a huge role to play not only in the economy but also in our well-being as a society. I hope you now better understand how the manufacturing sector contributes to economic development and growth.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

It does not matter if you sell or buy a property; you will always need a real estate agent to get the best deals. These specialists will be your guide in the buying and selling process. They know the documents you need, the paperwork you must complete, and what payments you must make. 

These reasons make it essential to find the best real estate consultant. An important point is their personality; it must be compatible with yours. You will need someone with whom you feel comfortable to express all your doubts and be in contact almost all the time during the process. Remember that this person will be remarkably close to your house, your finances, and you. For these reasons, you must be precise when choosing an agent who guarantees success.

We propose these ten questions. Do not hesitate to ask all your potential real estate agents and choose the best one.

How long have you worked as a broker in the real estate market? 

It would be best if you were your first and foremost question to the real estate agent: how long has he worked as a realtor? Knowing how much experience they have will give you an idea of your realtor’s experience and knowledge of the overall real estate market and how well he will advise you on the matters.

It would help if you asked the same question to the agency the realtor is analyzing their credibility.

How big is your agency in terms of the size of the business?

When we talk about real estate agencies, their business size matters greatly. When a real estate agency is small, the staff does all kinds of tasks, but as the agency grows, the real estate company’s team specializes more and more. In principle, the greater the size, the greater the degree of specialization. Everyone specializes in a particular area.

In a well-established real estate network, people specialize in real estate marketing, legal, tax, and financial matters, and agents specialize in dealing with buyers.

Specialization means greater efficiency. How a real estate agency organizes affects its productivity, which means more sales in less time.

How long has your agency been operating in the market?

In all crises, there are companies that, luckily or unfortunately, end up closing. However, those that survive the situation are the ones that are better prepared and are more professional.

What is your selling guarantee?

It would help if you asked your realtor about the timeframe they would need to sell your house in ideal circumstances. Typically, a home takes around a few months to sell. A realtor asking for more than 2 to 3 months lacks efficiency, so you should not hire them.

How effective have you been as a real estate agency?

The agency with the most posters in the streets is the reference real estate agency in the area. It is not important how many floors or homes they have for sale, but how many of the ones they have listed sell. Some real estate agencies have 20 listings and sell 18 in 1 year, while others have 200 listings and sell 15 in the same period. Tell me, which real estate agency would you like to work with?

Will I have a dedicated broker assigned to my case?

Closely related to the above, if a real estate agent manages 100 properties simultaneously, how much time can this real estate agency dedicate to your case? Probably much less than that real estate agency whose agents constantly work with a complete portfolio of 15-20 properties. The logical consequence is that less dedication and effort imply worse results and higher dedication is the key to better results.

Why should I hire you rather than a competitor?

It is about discovering the difference between the actual estate agencies operating in the market. It would help if you asked them why they are different and better. In short, what services can their agency give you so that you hire their services instead of hiring the services of one of their competitors? Ask openly. A vague or hesitant response is a bad sign, as is a typical response based on “how good they are” and “how well they do it.”

How proactively do you communicate with customers?

Many real estate agents do not call their customers for months. It is about knowing if the real estate agent has established a communication calendar by phone, e-mail, person, etc. If they do not have it confirmed, you know what awaits you.

If you want a real estate agent who defends your interests to the maximum, helps you sell your house for the total amount of money possible, and does it in an agile, effective way and with a minor inconvenience. You can expect the best services if you work with the best in the business.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.